Developing supply chain talent for new product development

Companies increasingly recognize that supplier integration into new product development (SINPD) is critical for innovation, speed to market, cost reduction, and competitive advantage. Yet many organizations continue to struggle with one fundamental issue: supply chain management (SCM) professionals are often expected to support strategic supplier collaboration without being fully prepared, empowered, or included early enough in the process.

Research involving 125 supply chain professionals across a broad range of industries suggests that organizations understand the strategic importance of supplier integration, but many are still not satisfied with the results they are achieving. More importantly, the findings suggest that organizational barriers and talent development gaps may be limiting the ability of SCM professionals to make meaningful strategic contributions to new product development initiatives.

Supplier integration is increasingly strategic

The research found that nearly 90% of respondents believe that developing and maintaining a technologically capable supply base is critical to their organization’s competitive success. In addition, approximately 70% of respondents indicated that their organizations plan to increase the use of collaborative supplier integration into new product development in the future.

These findings reinforce what many organizations are already experiencing firsthand. Suppliers are no longer simply providers of parts or services. They increasingly serve as sources of technical expertise, innovation, process improvement, and market responsiveness. As product development cycles accelerate and technologies become more complex, organizations are relying more heavily on suppliers to contribute ideas, technical capabilities, and specialized knowledge earlier in the development process.

This shift naturally places greater responsibility on SCM professionals. Supply chain personnel are often positioned between engineering, operations, suppliers, and business leadership, making them uniquely capable of facilitating collaboration across organizational boundaries.

The problem: Satisfaction with SINPD remains low

While organizations increasingly value supplier integration, many are not satisfied with the outcomes they are achieving. Only about 30% of respondents expressed a high level of satisfaction with their current collaborative SINPD efforts.

This gap between strategic importance and actual satisfaction raises important questions:

• Are organizations involving SCM professionals early enough?
• Do SCM personnel possess the technical and cross-functional skills needed to contribute strategically?
• Are organizational structures limiting collaboration?

The findings suggest that all three issues are present in many organizations.

Skill gaps continue to limit SCM contributions

The research identified significant concerns regarding the readiness of SCM professionals to participate strategically in supplier integration efforts.

Only about 45% of respondents believed their supply chain organizations possessed personnel with the skills necessary to evaluate the technical capabilities of suppliers for collaborative new product development. Similarly, only about 50% believed their organizations had the capabilities needed to assess supplier readiness for integration into NPD initiatives.

These findings suggest that many organizations expect SCM professionals to support increasingly technical and strategic initiatives without fully developing the associated competencies.

The rapid adoption of artificial intelligence, analytics tools, and digital supply chain technologies may further intensify these capability gaps. SCM professionals are now expected not only to coordinate supply activities, but also to interpret data, support technical evaluations, participate in cross functional decision-making, and contribute to long term strategic planning.

Organizational barriers are often the bigger issue

One of the most significant findings from the study was that many respondents believed SCM professionals may already possess valuable skills, but organizational structures often prevent those skills from being effectively utilized.

Several themes emerged repeatedly in the qualitative responses.

SCM is often viewed as tactical

Some respondents indicated that supply chain organizations are still viewed primarily as tactical support functions rather than strategic contributors. In these environments, SCM personnel may only become involved late in the process, often after major design or sourcing decisions have already been made.

As one respondent explained, “Supply chain is viewed as a support group that might help troubleshoot why a purchase order was not submitted correctly. They are not consulted about strategic decisions.”

When SCM is positioned primarily as a transactional function, organizations are less likely to recruit, develop, or empower supply chain professionals for strategic involvement in new product development.

Silos continue to limit collaboration

Other respondents highlighted organizational silos as a major barrier. Engineering, operations, procurement, and other business units often operate independently, limiting opportunities for collaboration during product development.

One participant noted that engineering departments sometimes “forget to involve other parties that will make the new product development successful.” Another respondent described a company culture that rewards narrow departmental performance rather than broader organizational alignment.

These silos can significantly reduce visibility, communication, and knowledge sharing across functions.

Training alone is not enough

Many organizations reported offering technical, leadership, and project management training. However, respondents repeatedly emphasized that training without opportunities for practical application often fails to create meaningful capability development.

Some organizations also indicated that existing training programs focus too heavily on narrow functional tasks rather than broader systems thinking and cross-functional collaboration.

In many cases, day-to-day operational pressures, manual work, and constant “firefighting” reduce the time available for employees to develop strategic skills.

How organizations are responding

The most common response identified in the study was increased and more targeted training. Respondents indicated that organizations are increasingly utilizing professional organizations, consultants, MBA programs, analytics training, and cross-functional development opportunities to enhance SCM capabilities.

Several respondents emphasized that technical skills alone are insufficient. Communication skills, collaboration skills, and leadership capabilities were also identified as critical components of effective supplier integration.

Some organizations reported hiring engineers into SCM roles and then providing business and supply chain training. Respondents generally believed that teaching business concepts to engineers may sometimes be easier than teaching highly technical product knowledge to traditional SCM personnel.

At the same time, respondents stressed that long-term improvement will require cultural change. SCM professionals must increasingly be viewed as strategic business partners rather than simply operational support personnel.

Implications for industry and higher education

The findings suggest that preparing SCM professionals for future supplier integration challenges will require a multi-pronged approach involving industry, universities, consultants, and professional organizations.

Organizations may need to:

• involve SCM earlier in product development,
• reduce cross-functional silos,
• create opportunities for practical application of skills,
• and invest more heavily in analytics, technical, and collaborative capabilities.

Universities may also need to reconsider how they prepare future SCM professionals. The study suggests that stronger exposure to engineering concepts, analytics, systems thinking, communication, and cross-functional collaboration could help better position graduates for future roles in new product development environments.

As supplier integration continues to evolve, the strategic role of SCM professionals will likely continue expanding. Organizations that successfully develop these capabilities may position themselves to achieve stronger innovation outcomes, improved supplier collaboration, and greater competitive advantage.

About the authors

Dr. Sime Curkovic is a professor of supply chain management and Lee Honors College Faculty Fellow at Western Michigan University. His research focuses on sourcing, operations, and supply chain risk management.

Dr. Thomas V. Scannell is a professor of supply chain management at Western Michigan University. His research and teaching focus on supply chain, operations, quality management, and supplier integration in new product development. He previously worked in electronic design, systems engineering, and program management.

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